The election is right around the corner, and the housing market continues to be a hot topic. The 2024 election has left many citizens feeling uncertain about many topics, but luckily for the housing market, we can turn to historical data to gain a better understanding of what’s to come.
Typically, the market slows down during the surrounding months of the election. This is likely due to people feeling hesitant about making a large purchase in an undetermined political landscape. Yet in the year after the election, home sales quickly bounce back and start to increase.
While home prices are shown to rise after an election, they increase at their natural rate, unaffected by the election. This trend proves that homebuying is a sturdy investment as home value does not easily waver due to external factors. Home prices have been increasing at a rate of 4% year over year in August, yet they are expected to fall to under 1% next spring which will help ease costs for homebuyers.
Lastly, mortgage rates are expected to continue to decline. According to Fannie Mac, mortgage rates dropped during 8 out of the 11 presidential elections. This steady decrease should help improve affordability for many prospective buyers.
While the election has been shown to impact the housing market, these changes are generally minor and short-term. Therefore, when making the decision to buy or sell, it is important to do research catered to your personal needs to determine if it is the right time.